The credit ratings agency assigned the ratings to Firstmac’s A-1a, A-1b and A-2 classes of RMBS to be issued by Firstmac Fiduciary Services as a trustee for Firstmac Mortgage Funding Trust No.4 Series 2-2016.

S&P said its ratings reflect the credit risk of the underlying credit portfolio, including the fact that it is a closed portfolio, “which means that no further loans will be assigned to the trust after the closing date”.

Furthermore, S&P said its ratings reflect that the portfolio’s credit support is sufficient to withstand the stresses applied by the agency.

“This credit support comprises lenders’ mortgage insurance to 16.7 per cent of the portfolio, which covers 100 per cent of the face value of these loans, accrued interest and reasonable costs of enforcement, as well as note subordination for all rated notes,” it said.

S&P also noted that the ratings reflect Firstmac’s underwriting and servicing standards, as well as its centralised approval process.